Keefe reiterates Galaxy Digital Outperform rating, Cdn$36 target

Published 14/05/2025, 12:50
Keefe reiterates Galaxy Digital Outperform rating, Cdn$36 target

On Wednesday, Keefe, Bruyette & Woods maintained a positive outlook on Galaxy Digital Holdings Ltd (TSX:GLXY:CA) (OTC:BRPHF), reiterating an Outperform rating and a price target of Cdn$36.00. The firm’s assessment arrives as Galaxy Digital prepares for its upcoming NASDAQ listing scheduled for May 16, 2025. The financial services company, which specializes in digital assets and blockchain technology, has recently transitioned to US GAAP accounting standards and restructured its operations into two main segments: Digital Assets and Data Centers, with an additional Treasury & Corporate segment.

Galaxy Digital’s first quarter of 2025 results unveiled a net loss of -$295 million, which was marginally better than the anticipated midpoint loss of -$300 million. This performance was shared just days before the company’s expected NASDAQ debut. Despite the reported loss, the company has shown signs of recovery in the second quarter with an operating income reported at $165 million, based on the midpoint of their projections. Furthermore, Galaxy Digital’s equity capital stands strong at $2.2 billion, indicating a solid financial foundation.

The upcoming NASDAQ listing is a significant milestone for Galaxy Digital, reflecting the company’s growth and its efforts to expand its investor base. The transition to US GAAP and the consolidation of its business segments are strategic moves that aim to streamline operations and improve financial reporting transparency. These changes come at a time when the digital assets market is evolving, and Galaxy Digital is positioning itself to capitalize on future industry tailwinds.

Galaxy Digital’s financial results and the subsequent rating affirmation by Keefe, Bruyette & Woods suggest that the company is navigating its challenges while laying the groundwork for future opportunities. As the firm looks ahead to its NASDAQ listing, investors will likely monitor Galaxy Digital’s performance closely, especially in light of the company’s strategic realignments and the potential for growth in the digital asset space.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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